Daily Review 10/12/2009

USD Dollar (USD)

The Dollar was mixed versus the majors after Inventories at U.S. wholesalers rose in October for the first time in more than a year, signaling companies are picking up the pace of orders as the economy shows signs of improvement. NASDAQ and Dow Jones strengthened by 0.5% respectively. Crude Oil fell by 2.7% after the report showed that Crude inventories fell by 3.8 million barrels and Crude price closed at 70.64$ a barrel after oil inventories showed a rise. Gold(XAU) fell by 2% closing at 1120.4$ an ounce. Today, Trade Balance is expected at -36.9B vs. -36.5B prior. Unemployment Claims is expected to rise from 457K to 463K. Federal Budget Balance is expected at -136B vs. -176.4B prior.


The Euro gained slightly versus the Dollar after U.S. stocks rose modestly, reviving demand for higher-yielding assets. Overall, EUR/USD traded with a low of 1.4668 and with a high of 1.4782. Today, ECB Monthly Bulletin will be released and ECB President Trichet will speak at the University of Cambridge.

EUR/USD - Last: 1.4703

Resistance 1.4782 1.49 1.5090
Support 1.4675 1.46

British Pound (GBP)

The Pound decreased versus the Dollar and Euro as the U.K.’s Treasury is expected to raise 550 million pounds targeting payouts at banks in the next few months and another 3 billion pounds from incomes earned after April 2011. Overall, GBP/USD traded with a low of 1.6167 and with a high of 1.6375. Today, MPC Rate Statement is expected to leave the Interest Rate unchanged at 0.5%. Asset Purchase Facility is expected to stay unchanged at 200B in case it will be higher the Pound is expected to drop.

GBP/USD - Last: 1.6254

Resistance 1.6350 1.6515 1.6670
Support 1.6165 1.61

Japanese Yen (JPY)

The Yen continued to strengthen versus the Dollar after Japanese stocks fell the most in 8 days. Core Machinery Orders came out as expected with -4.5%. Overall USD/JPY traded with a low of 87.36 and with a high of 88.7. No economic data expected today.

USD/JPY-Last: 87.86

Resistance 88.5 89.2 90.1
Support 87.35 87 86.6

Canadian dollar (CAD)

The Canadian Dollar strengthened against the Dollar amid speculation that yesterday’s decline to the lowest level in almost two weeks went too far. Overall, USD/CAD traded with a low of 1.0514 and with a high of 1.0661. Today, Trade Balance is expected at -0.6B vs. -0.9B prior.

CAD/USD - Last: 1.0568

Resistance 1.0590 1.0650 1.0670
Support 1.0533 1.0485 1.0433

UFX Bank Research